Market Insights Financial Corporate Finance

Mergers and Acquisitions - El Salvador

El Salvador

The transaction value in the Mergers and Acquisitions market is projected to reach US$50.45m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 44.24% resulting in a projected total amount of US$72.77m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$20.57m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Currency

Analyst Opinion

The Mergers and Acquisitions market in El Salvador is experiencing a steady increase in activity.

Customer preferences: Companies in El Salvador are increasingly looking to mergers and acquisitions as a strategic way to expand their market presence, diversify their offerings, and improve their competitive position. This trend is driven by the desire to achieve economies of scale, access new technologies, and capitalize on synergies between businesses.

Trends in the market: One notable trend in the M&A market in El Salvador is the growing interest from foreign investors. International companies are attracted to the country's stable economy, strategic location, and business-friendly policies. This influx of foreign investment is not only boosting deal volumes but also contributing to the overall development of the market.

Local special circumstances: El Salvador's small market size and limited domestic competition are creating opportunities for both local and international players to consolidate their presence through mergers and acquisitions. This trend is particularly evident in sectors such as telecommunications, banking, and energy, where companies are seeking to enhance their market share and improve operational efficiency through strategic partnerships.

Underlying macroeconomic factors: The economic stability and steady GDP growth in El Salvador are providing a favorable environment for M&A activity. Low inflation rates, a relatively young and growing population, and government initiatives to attract foreign investment are all contributing to the positive outlook for mergers and acquisitions in the country. Additionally, the government's efforts to modernize regulations and improve the ease of doing business are further fueling the growth of the M&A market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.